Since losing momentum following the approval of spot Bitcoin exchange-traded funds (ETFs) in the US, BTC has been moving lazily sideways with a temporary dip in the $38K area over the past month. However, it suddenly breached the $44K line on the way to the weekend until eventually settling at the $48K range. Interestingly, this more than 12% surge in the weekly chart of the digital asset coincided with the Chinese New Year festivities. With the arrival of the Wood Dragon, could this be the ideal time to invest in Bitcoin?
What Does the Wood Dragon Stand For?
The Chinese astrology revolves around 12 animals and five elements. It is celebrated based on the cycles of the Chinese lunar calendar, which explains why it changes dates from time to time in the standard Gregorian calendar. The previous year was the time of the Water Rabbit and last February 10 marked the arrival of the Wood Dragon.
What’s so remarkable about the new cycle is that it’s the only one represented by a mythical creature in the Chinese zodiac. The rest are based on animals that we normally encounter.
Being a special character compared to its counterparts and being on top of the food chain, the Chinese dragon represents confidence, intelligence, and enthusiasm. This is a major departure from the rabbit’s quiet, elegant, kind, and responsible nature.
Enchanted with the element of wood, the year promises a period of growth, vitality, and prospering wisdom according to renowned Chinese medicine practitioner Tsao-Lin Moy in an interview with the New York Post.
“Dragons are Yang in nature; enigmatic, intelligent, spiritual, and wise,” Moy said. “The Wood Dragon is the energy of spring, of reaching toward the light while deepening roots into the soil.”
“Pay attention to balancing the Yang energy of the Dragon with the Yin energy of the Earth, so you can grow and expand to greater heights in your career and personal life,” she added. “Remember, deep roots support growth and expansion.”
Meanwhile, Chinese metaphysics consultant Vicky Iskandar predicts that many game-breaking opportunities lie in the turn of the new cycle. She noted in her blog, “The year one encounters the animal sign of their birth is usually a life-changing one, and it often coincides with Jupiter’s return in one’s natal chart.”
The Dawn of a New Epoch in Bitcoin
Similar to the Chinese lunar calendar, Bitcoin also undergoes a cycle until it reaches its cap of 21 million BTC. The arrival of the Wood Dragon is just in time for the pivotal moment in the Bitcoin ecosystem, the halving. The fourth halving happening in April increases Bitcoin mining difficulty by reducing its rewards by 50%.
Currently, the reward for each block mined in the Bitcoin blockchain stands at 6.25 BTC. This will be reduced to 3.125 BTC post-halving.
With the growing institutional demand for Bitcoin, primed by the arrival of spot Bitcoin ETFs, the fourth halving cycle is expected to trigger a heightened demand for the largest cryptocurrency by market cap. Historically, each halving has displayed all-new heights for BTC values with the last cycle topping near the $69K mark.
With the mystical benefits ushered in by the Wooden Dragon and the creature’s confidence and cleverness in exploring uncharted places, Bitcoin could very well mimic the same traits as some analysts have predicted that the next halving could be the catalyst for the crypto asset’s eventual climb to $100K or more.
It could likely be a truly life-changing moment for people who religiously HODL the asset with their diamond hands.
Final Thoughts: The Wood Dragon and Bitcoin
Overall, the predictions for the year of the Wood Dragon are truly enticing, especially when applied to investing in Bitcoin, but do remember that they are not based on any scientific or systematic study.
As shown here, most involve sweeping statements and general descriptions that could be linked to just about anything. While we are not dismissing the mystic nature of Chinese astrology, it’s always prudent to anchor your financial decisions on research based on tested and proven strategies. And when in doubt, be sure to seek the advice of expert financial advisers.